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PM SVANidhi Yojana to Offer Cheap Loans to Street Vendors; Know Features, Benefits and How to Apply for It

Abha Toppo
Abha Toppo

Amid lockdown 5.0, the Union Cabinet, chaired by PM Narendra Modi, on 1st June 2020 has decided to launch a special micro-credit facility scheme called 'PM SVANidhi' that will provide affordable loans to the street vendors or thelewalas, according to a government statement. The scheme is likely to go a long way in enabling street vendors to start their work and earn livelihoods in the wake of Corona crisis.

The Special Micro-Credit Facility Scheme - PM SVANidhi or PM Street Vendor's AtmaNirbharNidh was launched by the Ministry of Housing & Urban Affairs to offer affordable loans to the street vendors.

The statement said that "Over 50 lakh people that includes vendors, hawkers, rehriwala, thelewalas, theliphadwala etc. in different areas/ contexts are expected to benefit from this scheme".

The goods supplied by vendors range from fruits, vegetables, tea, pakodas, breads, eggs, ready-to-eat street foods, textiles, apparel, footwear, books/ stationaries, artisan products, etc. The services include cobblers, pan shops, barber shops, laundry services etc.

Special features of 'PM SVANidhi' Scheme

  • Mobile app and web portal based application process

  • No guarantee will be required for this loan

  • Initial loan up to Rs 10,000 for one year

  • 7 percent interest subsidy on repayment of loan on or before time.

  • Subsidy will be paid to eligible creditors on half yearly basis.

  • Eligibility of more loans in case of timely & early repayment of first loan

  • Monthly cashback facility on receipt or payment of digital transactions

Benefits of 'PM SVANidhi' Scheme

The vendors or thelewalas can avail of a working capital loan of up to Rs. 10,000 that is repayable in monthly instalments in the tenure of 1 year.

On timely or early repayment of the loan, an interest subsidy at 7% per annum would be credited to the bank accounts of beneficiaries via Direct Benefit Transfer (DBT) on a six-monthly basis.

No penalty would be charge on the early repayment of loan.

For the very first time MFIs or NBFCs or SHG Banks have been allowed in a yojana for the urban poor because of their ground-level presence & proximity to the urban poor including street vendors.

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